Circle Outpaces BlackRock as Largest Tokenized Treasury Issuer
Circle has surpassed BlackRock as the largest issuer of tokenized US Treasuries on any blockchain, with its USYC fund managing over $3 billion in assets under management.
This milestone marks a significant shift in the market, where Circle's existing dominance in stablecoins through USDC gives it a natural distribution advantage. The company acquired Hashnote, the developer of USYC, in January 2025 and has since scaled the product using its distribution network and institutional relationships.
USYC offers investors exposure to short-duration US Treasuries and operates across multiple blockchain networks, making it programmable, composable, and usable as collateral in digital asset markets. The fund's growth is notable, having overtaken BlackRock's BUIDL fund in March 2026 and widening the gap since.
The tokenized Treasury market is heating up, offering yield to investors who park their capital in these products. USYC stands out due to its utility as collateral, allowing users to post yield-bearing Treasury exposure as margin or backing for other positions.